Vassar Brothers Medical Center in the City of Poughkeepsie. / Journal file

Written by

Nina Schutzman

Poughkeepsie Journal

The Atrium at Saint Francis Hospital in Poughkeepsie. / Journal file

Like many businesses, medical organizations have had to find ways to stay afloat despite the struggling economy in recent years.

Some hospitals have looked into partnerships and integrated health-care systems to save money and improve quality for patients, organization representatives said.

Health Quest is a health-care network that includes Northern Dutchess Hospital in Rhinebeck, Putnam Hospital Center in Carmel, Vassar Brothers Medical Center in Poughkeepsie and Health Quest Medical Practice, among other medical practices.

“People are putting medical care off right now because they lose their jobs, so they lose health insurance,” said David Ping, senior vice president of strategic planning and business development for Health Quest.

Nationwide, hospital inpatient discharges have decreased 5 to 10 percent, according to the American Hospital Association.

Within the Health Quest system, that number is only 3 percent, Ping said.

The system has saved an estimated $200 million on things such as supplies, equipment and capital since its conception in 1999 until 2008, Ping said.

“One reason that we can keep our costs relatively low is because we consolidate most administrative functions,” Ping said.

Purchasing supplies and equipment as a network reduces costs, too.

Health Quest works closely with physicians, Ping said.

“We’re integrating them (doctors) into management roles like never before,” Ping said. “They keep us updated on cost-saving measures and quality standards.”

Dr. Ronald Tatelbaum is a cardiologist, acting chief medical officer and vice president of medical affairs for Health Quest.

“We have purchasing power together, scale down the top levels,” Tatelbaum said.

Health Quest hospitals discharge 33,000 inpatients each year and about 89,000 people are seen in the emergency departments and released without being admitted.

“The bar is raised at all three hospitals because if we see one doing something well, we share that idea across the board,” Tatelbaum said.

Alliance formed

In September, five hospitals from three health care systems formed Hudson Health Partners LLC: Saint Francis Hospital in Poughkeepsie, St. Luke’s Cornwall Hospital in Newburgh and Bon Secours Charity Health System, based in Rockland County.

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There was no official merger and each involved organization maintains a separate identity, said Larry Hughes, public relations coordinator for Saint Francis Hospital.

“We’ve joined forces to enhance quality and save money on things like supplies, the kinds of nitty-gritty things that keep places running,” Hughes said.

“This is what everyone wants government to do, but hospitals are doing it first.”

Hughes said it’s too early to estimate savings, but that representatives from the partners are meeting to identify what steps to take next.

“If you have three hospitals ordering from the same suppliers, as one entity, that’s got to save some money,” Hughes said. “There will be substantial savings.”

Matthew Meltzer of Wappingers Falls said even programs like Health Quest haven’t changed the fact that health insurance costs are rising.

The self-employed Meltzer runs a driving instruction school.

“It’s wonderful when hospitals interrelate because they’re not duplicating services,” Meltzer said. “But my driving school pays $12,000 a year for my health insurance, and I can’t believe it’s so high.”

He’s still grateful for his health insurance, he said.

“But I had two surgeries last year,” Meltzer said. “So it’s good I had it.”

As for downsides to the shared system, Tatelbaum said he can only think of one and it might be an “illusion.”

“Some places are afraid that mergers make them lose their local community flavor or their identity, but I’m not sure that happens,” Tatelbaum said.

Ping agreed.

“There’s a thought that you might get swallowed up if you join a system like Health Quest, but that couldn’t be further from the truth,” Ping said. “There’s just tremendous benefit.”

Between the savings and shared programs, Tatelbaum sees programs such as Health Quest being the future of the health care system.

Ping said the key is giving people access to quality care.

“We’re seeing more patients stay local and that’s helped lead to the success we’ve been having,” Ping said.